New Zealand wine hits 21st consecutive year of 'significant' growth

In New Zealand Winegrowers' 2016 annual report, the country has achieved yet another year of double digit growth, with exports rising 10% to $1.6bn.

In New Zealand Winegrowers' 2016 annual report, the country has achieved yet another year of double digit growth, with exports rising 10% to $1.6bn.

The country's wine industry is on track to hit its 2020 goal of exports being valued at $2bn.

"The on-going progress towards the $2 billion goal is founded on our reputation as a wine exporter of the first rank, known for crafting and marketing distinctively New Zealand, high quality, high value wines," said Steve Green, the chair of New Zealand Winegrowers.

According to Green's statement in the report continued strong demand in key markets, a smaller 2015 vintage and a favourable exchange rate against US dollar all helped to contribute to the increase in value. "On the back of these developments the average $FOB value per litre lifted 8%," he said.

New Zealand Winegrowers’ 2016 annual report

Specifically the US market was major driver for the growth in value over the past year.

Green said: "North American markets were the major driver of export growth in the past year as wineries, facing supply constraints, directed supply to the most profitable markets. Exports value to the USA grew 24% this year and, at $461 million, it is now firmly established as our largest market. Similarly exports to Canada lifted13%. Growth was also strong into the United Kingdom with export value up 8% to $382 million."

The 2016 vintage is expected to boost export volumes 10% and should help to better meet demands over the next 12 months.

Access to key markets through free trade agreements including with China and Australia were highlighted as a "prerequisite to success".

Following the UK's vote to leave the EU working out new trade agreements will be an important milestone to overcomer in the future, but not one that will deter future growth in either market.

Green said: "We have supported the proposed FTA with the EU. Wine exports to the EU are valued at over $500 million, and the benefits for our sector from a robust deal with the EU are obvious. Brexit has clearly complicated matters, but our ambition to improve access into both the EU and UK markets is not diminished by this development."